For the last few years the International Tax community has held its breath on whether there will be an agreement on a new International Tax Model.  The current system has largely been in place since the early 20th century and is outdated, for the current digital world.

The OECD put forward proposals in 2020, including the concept of a minimum corporate tax rate. This concept has gained significant interest recently, particularly as the Biden administration appears to be  open to an agreement.  This week's G7 meetings will hopefully make progress and provide some direction for a wider global solution.  If an agreement is reached, taking into account some of the thinking of the OECD, it will allow countries with large markets for digital markets, such as the UK, to potentially tax more of the activity taking place within their borders.